Unemployment in pakistan

http://www.indexmundi.com/pakistan/unemployment_rate.html Unemployment figures If the unemployment rate is as low as the government claims it to be, then even the minor uptick in the number of people without work would not be cause for worry. Yet we find ourselves highly sceptical of the data emanating from the Pakistan Labour Force Survey for fiscal year 2010, which suggests that the unemployment rate was a meagre 5.6 per cent. We are not certain as to whether the error is a genuine methodological flaw or whether the government is deliberately fiddling with the numbers, but all anecdotal evidence suggests that the real rate of unemployment is significantly higher.

Regardless of the source of the error, we would urge the government to come up with more accurate computations about the state of the Pakistani labour force. It is bad enough to provide inaccurate information to the public. It is even worse if the government is using this data in its own planning efforts.

A 5.6 per cent rate suggests that unemployment is not a serious problem in the country, yet the overwhelming majority of economists and public policy experts agree that it is one of the most serious economic concerns facing Pakistan today. If the government cannot get itself to admit the problem, then how can it be expected to work towards a solution?

It is highly likely that the labour force survey is just another in a long line of symptoms showing that the current administration has neither the wisdom nor the courage to confront the countrys economic challenges and would rather hide behind distortions and platitudes. We remain confounded as to why that should be so. The economy is admittedly in bad shape and it will take strong efforts to get it back on track, but there is a near-unanimous consent amongst experts as to how get the task done. It is time for the administration to cease commenting and start taking charge of the economy. The government owes it to the people to be honest about the scale of the problem as well as the hard measures that would be needed to move towards a solution. Published in The Express Tribune, February 13th, 2011.

This syndicated post originally appeared at http://tribune.com.pk/story/117940/unemployment-figures/ on 12 February 2011 Pakistan News Blog - Economy, Government Title: Unemployment figures

November 06, 2009 The latest surveys of employers and households both show continued deterioration in the U.S. job market. For the 22nd consecutive month the number of payroll jobs fell. In view of the turnaround in GDP statistics in the July-September quarter, the continuing decline in both manufacturing and service-sector employment is especially disheartening. The combination of rising output and shrinking payrolls means that employers are still scrambling to find ways to produce more output with less labor input. The latest productivity numbers, released yesterday by the Labor Department, confirm that U.S. output per hour is rising strongly. This is good news for companies costs and possibly for future wage gains, but it is bad news for job seekers. If there is a silver lining in the latest jobs report it is that the pace of job market deterioration is much slower than it was earlier in the year. Payrolls are still shrinking but much more slowly than they were last winter. This sliver of good news cannot be very reassuring to the unemployed. The BLS report shows there were an additional 560,000 jobless workers in October compared with September. Their job prospects are bleak. The number of unemployed workers who have been jobless for 6 months or longer hit a new all-time high in October, reaching 5.6 million workers or 3.6 % of the labor force. The average duration of unemployment in October also hit a new record, 26.9 weeks. This is an increase of more than 10 weeks since the recession began. Compared with the strong job market at the end of the 1990s, the average duration of U.S. unemployment spells has approximately doubled.

The current recession has also seen the steepest decline in the employment-topopulation ratio in the modern era. Since the peak of the last economic expansion in December 2007 the percentage of Americans who hold jobs has fallen 4.2 percentage points, dropping from 62.7% to 58.5% of the population 16 and over. The adult employment rate is now lower than it has been anytime in the past 26 years. Many people who hold jobs are also suffering. Almost 9.3 million workers, or 6.7% of those with jobs, are employed in part-time positions even though they would prefer to work in

a full-time job. The latest employment and unemployment statistics confirm that, at least in the job market, this is the worst economic downturn since the Great Depression.

http://www.theodora.com/wfbcurrent/pakistan/pakistan_economy.html Economy - overview: Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and low levels of foreign investment. Between 2001-07, however, poverty levels decreased by 10%, as Islamabad steadily raised development spending. Between 2004-07, GDP growth in the 5-8% range was spurred by gains in the industrial and service sectors - despite severe electricity shortfalls - but growth slowed in 2008-09 and unemployment rose. Inflation remains the top concern among the public, climbing from 7.7% in 2007 to more than 13% in 2010. In addition, the Pakistani rupee has depreciated since 2007 as a result of political and economic instability. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis, but during 2009-10 its current account strengthened and foreign exchange reserves stabilized largely because of lower oil prices and record remittances from workers abroad. Record floods in July-August 2010 lowered agricultural output and contributed to a jump in inflation, and reconstruction costs will strain the limited resources of the government. Textiles account for most of Pakistan's export earnings, but Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Other long term challenges include expanding investment in education, healthcare, and electricity production, and reducing dependence on foreign donors.

GDP (purchasing power parity): $451.2 billion (2010 est.) country comparison to the world: 28 $439.4 billion (2009 est.) $421.2 billion (2008 est.) note: data are in 2010 US dollars [see also: GDP (purchasing power parity) country ranks ]

GDP (official exchange rate): $174.8 billion (2009 est.) [see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate: 2.7% (2010 est.) country comparison to the world: 135 4.3% (2009 est.) 3.6% (2008 est.) [see also: GDP - real growth rate country ranks ]

GDP - per capita: $2,400 (2010 est.) country comparison to the world: 182 $2,400 (2009 est.) $2,400 (2008 est.) note: data are in 2010 US dollars [see also: GDP - per capita country ranks ]

GDP - composition by sector: agriculture: 21.8% [see also: GDP - composition by sector - agriculture country ranks ] industry: 23.6% [see also: GDP - composition by sector - industry country ranks ] services: 54.6% (2009 est.)

[see also: GDP - composition by sector - services country ranks ]

Labor force: 55.77 million country comparison to the world: 10 note: extensive export of labor, mostly to the Middle East, and use of child labor (2009 est.) [see also: Labor force country ranks ]

Labor force - by occupation: agriculture: 43% [see also: Labor force - by occupation - agriculture country ranks ] industry: 20.3% [see also: Labor force - by occupation - industry country ranks ] services: 36.6% (2005 est.) [see also: Labor force - by occupation - services country ranks ]

Unemployment rate: 15% (2010 est.) country comparison to the world: 150 14% (2009 est.) note: substantial underemployment exists [see also: Unemployment rate country ranks ]

Population below poverty line:

24% (FY05/06 est.) [see also: Population below poverty line country ranks ]

Household income or consumption by percentage share: lowest 10%: 3.9% [see also: Household income or consumption by percentage share - lowest 10% country ranks ] highest 10%: 26.5% (2005) [see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index: 30.6 (FY07/08) country comparison to the world: 109 41 (FY98/99) [see also: Distribution of family income - Gini index country ranks ]

Investment (gross fixed): 15% of GDP (2009 est.) country comparison to the world: 130 [see also: Investment (gross fixed) country ranks ]

Budget: revenues: $25.33 billion [see also: Budget - revenues country ranks ] expenditures: $36.24 billion (2009 est.)

[see also: Budget - expenditures country ranks ]

Public debt: 49.9% of GDP (2010 est.) country comparison to the world: 52 49.3% of GDP (2009 est.) [see also: Public debt country ranks ]

Inflation rate (consumer prices): 13.4% (2010 est.) country comparison to the world: 217 13.6% (2009 est.) [see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate: 12.5% (31 December 2009) country comparison to the world: 20 15% (31 December 2008) [see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate: NA% [see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:

$59.75 billion (31 December 2010 est) $47.23 billion (31 December 2009 est) [see also: Stock of narrow money country ranks ]

Stock of broad money: $85.22 billion (31 December 2010 est.) $65.13 billion (31 December 2009 est.) [see also: Stock of broad money country ranks ]

Stock of domestic credit: $71.45 billion (31 December 2010 est.) country comparison to the world: 56 $63.1 billion (31 December 2009 est.) [see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares: $33.24 billion (31 December 2009) country comparison to the world: 59 $23.49 billion (31 December 2008) $70.26 billion (31 December 2007) [see also: Market value of publicly traded shares country ranks ]

Agriculture - products: cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs

Industries: textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

Industrial production growth rate: 4.9% (2009 est.) country comparison to the world: 67 [see also: Industrial production growth rate country ranks ]

Electricity - production: 90.8 billion kWh (2007 est.) country comparison to the world: 33 [see also: Electricity - production country ranks ]

Electricity - consumption: 72.2 billion kWh (2007 est.) country comparison to the world: 37 [see also: Electricity - consumption country ranks ]

Electricity - exports: 0 kWh (2008 est.) [see also: Electricity - exports country ranks ]

Electricity - imports: 0 kWh (2008 est.)

[see also: Electricity - imports country ranks ]

Oil - production: 59,140 bbl/day (2009 est.) country comparison to the world: 59 [see also: Oil - production country ranks ]

Oil - consumption: 373,000 bbl/day (2009 est.) country comparison to the world: 34 [see also: Oil - consumption country ranks ]

Oil - exports: 30,090 bbl/day (2007 est.) country comparison to the world: 87 [see also: Oil - exports country ranks ]

Oil - imports: 319,500 bbl/day (2007 est.) country comparison to the world: 33 [see also: Oil - imports country ranks ]

Oil - proved reserves: 436.2 million bbl (1 January 2010 est.) country comparison to the world: 49

[see also: Oil - proved reserves country ranks ]

Natural gas - production: 37.5 billion cu m (2008 est.) country comparison to the world: 23 [see also: Natural gas - production country ranks ]

Natural gas - consumption: 37.5 billion cu m (2008 est.) country comparison to the world: 21 [see also: Natural gas - consumption country ranks ]

Natural gas - exports: 0 cu m (2008 est.) country comparison to the world: 146 [see also: Natural gas - exports country ranks ]

Natural gas - imports: 0 cu m (2008 est.) country comparison to the world: 105 [see also: Natural gas - imports country ranks ]

Natural gas - proved reserves: 840.2 billion cu m (1 January 2010 est.) country comparison to the world: 29

[see also: Natural gas - proved reserves country ranks ]

Current account balance: -$2.641 billion (2010 est.) country comparison to the world: 164 -$3.583 billion (2009 est.) [see also: Current account balance country ranks ]

Exports: $20.29 billion (2010 est.) country comparison to the world: 68 $18.33 billion (2009 est.) [see also: Exports country ranks ]

Exports - commodities: textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs

Exports - partners: US 15.87%, UAE 12.35%, Afghanistan 8.48%, UK 4.7%, China 4.44% (2009)

Imports: $32.71 billion (2010 est.) country comparison to the world: 56 $28.53 billion (2009 est.)

[see also: Imports country ranks ]

Imports - commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Imports - partners: China 15.35%, Saudi Arabia 10.54%, UAE 9.8%, US 4.81%, Kuwait 4.73%, Malaysia 4.43%, India 4.02% (2009)

Reserves of foreign exchange and gold: $16.1 billion (31 December 2010 est.) country comparison to the world: 46 $13.77 billion (31 December 2009 est.) [see also: Reserves of foreign exchange and gold country ranks ]

Debt - external: $57.21 billion (31 December 2010 est.) country comparison to the world: 52 $53.62 billion (31 December 2009 est.) [see also: Debt - external country ranks ]

Stock of direct foreign investment - at home: $30.09 billion (31 December 2010 est.) country comparison to the world: 61 $28.09 billion (31 December 2009 est.)

[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad: $1.047 billion (31 December 2010 est.) country comparison to the world: 73 $1.017 billion (31 December 2009 est.) [see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates: Pakistani rupees (PKR) per US dollar - 85.27 (2010), 81.7129 (2009), 70.64 (2008), 60.6295 (2007), 60.35 (2006)

http://www.gfmag.com/gdp-data-country-reports/204-pakistan-gdp-countryreport.html#axzz1Kuu33GaH Unemployment rate 2008 2009 2010* 2011** 6.2% 6.2% 6.2% 6.2%

*Estimate

**Forecast

Reasons for growing unemployment in Pakistan Posted on June 19, 2009 by Raheem

Unemployment is one of the biggest problems of Pakistan. That person is unemployed who has ability to do work and is willing to do work but is unable to get job opportunity. In the current situation more than 30 lakh people are unemployed in Pakistan and unemployment ratio is more than 12%.

i. The biggest reason of unemployment in Pakistan is concerned with the backwardness of agriculture sector. Agriculture is the biggest sector of our economy that contributes 20.9% to GDP and 44% people get jobs from this sector directly or indirectly. Unemployment in this sector is from two sides.

First is due to the adoption of latest machinery and capital intensive technology. Due to this, demand for labour has been decreased. Second is the backwardness of this sector. There is less availability of fertilisers, pesticides, quality seeds, absence of land reforms and lack of agriculture education. Due to all these factors agriculture sector is not expanding and there is general and disguised unemployment.

ii. Industrial sector is the second largest sector of our economy and contributes 19% to national income. This sector should employ a large number of labor. But due to backwardness it is employing a small number of people. Due to electricity breakdown already established industry is deteriorating, resulting in the prevailing unemployment ratio.

iii. High cost and low quality are responsible for less demand for our agri and industrial items. Because of less demand of such kinds of goods both the domestic and international producers are losing their interest in production. Thats why people are becoming unemployed.

iv. In Pakistan education system is defective. There is no educational planning. This system is producing the stuff, which is useless in technical fields of the country. There is lack of technical and vocational institutions. Public attitude towards education is wrong, they want to get their degrees in general and arts subjects. Nobody can set up his own business without technical education.

v. Millions of people in Pakistan are poor. Due to poverty people are overburdened with expenditures and their savings are very low. It is said that for the reasonable growth of economy saving rate should be at least 25% in any country, but in Pakistan it is only 13 to 14% which is very low. Low investment level is due to less savings, ultimately there is unemployment.

vi. In Pakistan majority of the businessmen are less educated. They do not know how to run their businesses properly. So they become bankrupt. This factor generates unemployment on a massive level.

vii. In Pakistan there is lack of every kind of planning. There is a huge difference between the demand and supply for labor. There is absence of such kind of planning to produce doctors, engineers, technical experts scientists etc, according to the need of different sectors of the economy.

viii. Loadshedding of electricity is disturbing economy, especially the industrial sector. Due to less availability and high rates of basic inputs like electricity, gas and oil etc, many industries have been closed.

ix. In Pakistan, tax system is not satisfactory. Ratio of direct taxes is more than indirect taxes. Tax evasion is common. Due to less income from the taxes, government cannot start developmental projects. If there is no investment, then from where public would find jobs. On the other side if government takes step to increase indirect taxes, it would also affect investment and ultimately employment level.

x. Current international financial crisis is one of the biggest reason of unemployment in Pakistan and in the whole world. This crisis originated from the banking sector of USA, UK and some European countries and is now a global phenomena.

xi. Pakistans population growth rate is 1.8% which is the highest in the region. Our resources are limited. Different sectors of economy are unable to provide jobs to the growing population. So there is unemployment.

xii. Fiscal and monetary policies are also responsible for unemployment. In view of fiscal policy, Pakistan has less funds to invest in job providing projects. Every annual budget shows deficit. Through the monetary policy if the government increases the rate of interest, it discourages the investors from getting loans.

xiii. Political instability, bad law and order situation, armys interference, bomb blasts, terrorism, inconsistent economic policies etc are the factors which are disturbing domestic and foreign investment. Pakistan investors are taking away their money to Dubai and other countries of the world.

xiv. Due to 9/11 incident, Gulf war and the baseless allegations of terrorism the image of Pakistan has been affected very badly at international level. So in the current scenario Pakistan has limited job opportunities in other countries of the world.

xv. Craze for work only in government sector, instead of private sector and seasonal firms, industries are also responsible for unemployment.

xvi. Since 1947, Pakistani rulers got loans from IMF, World Bank and many other sources. Such loans were not utilised honestly. Current external debt of Pakistan is more than 50 billion dollar. Government has to allocate a big amount for the repayment of loans with interest. So due to less resources for developmental projects there is unemployment.

Concluding, I would like to suggest that with proper economic planning, consistent policies of government, better law and order situation, abolishing energy crisis, sincerity with Pakistan and by adopting the Islamic economic system we can not only tackle the issue of unemployment but every economic problem of our country as well. http://www.opfblog.com/8449/reasons-for-growing-unemployment-in-pakistan/

http://www.indexmundi.com/pakistan/unemployment_rate.html